Alliance Trust reforms to be put to shareholder vote

Investors in Alliance Trust will today be asked to ratify proposals to outsource the group’s fund management function.

The Dundee head quartered Trust announced in December a proposed new way of managing its funds.

The board – led by chairman Lord Smith of Kelvin – have identified adviser and broker Willis Towers Watson (WTW) as the group to oversee the Trust’s money management through a new multi-manager model.

The Trust currently handles the management of its multibillion funds in-house but it has long been under fire over its performance – most notably from major shareholder Elliott.

While the board has the authority to push through the investment changes, it has decided to offer a binding vote to investors on the issue.

That will take place during a general meeting of the company at Edinburgh International Conference Centre this afternoon, although the vote may not be the expected formality after the Trust was last week forced to deny a possible conflict of interest relating to WTW’s proposed appointment.

The meeting will also see a second vote relating to the proposed buyout of Elliott’s 19.75% share in the company.

The move – which would involve an outlay by the Trust of around £620 million – would see investor Elliott exit the roster after several years of activism.